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February 5, 2008

Oster trial: Free tires and dealer's plates for a year

PROVIDENCE -- More than a year before prosecutors allege the wheels started turning on a bribery scheme for which an ex-Lincoln town administrator is standing trial, an accused co-conspirator wanted a set of tires -- free ones.

Car dealer Robert Campellone testified today that in December 1999 he met Robert Picerno -- the man the state says was the partner of ex-Lincoln Town Administrator Jonathan F. Oster in trying to bribe businessmen in a property deal -- when Picerno brought a car from Campellone's dealership.

Picerno has since been convicted, in 2004, on bribery charges. Oster is on trial facing two counts of bribery and two counts of conspiracy from 2000 to 2002, when he served as town administrator.

Campellone said in Providence County Superior Court today that Picerno later pressed him for a new set of tires for the car. Campellone, who owns a car dealership on George Washington Highway in Lincoln, said he provided the tires because he was intimidated by Picerno's status as a member of the land-regulating Lincoln Planning Board.

Campellone said that Picerno got him to buy tickets to a campaign fundraiser for Oster, who was running for town administrator in 2000.

In early 2001, Campellone testified, he was contacted by Picerno about buying the old H&H Screw Co. site on Route 116 in Lincoln, a six-acre piece the town controls. Campellone said that Picerno said the price would be $105,000 paid to the town and $25,000 in cash paid to Picerno. Campellone said he secretly taped the transaction to protect himself.

Campellone testified he paid Picerno the cash, but months later no progress had been made in his purchase of the site. He said he got so frustrated that he called Oster to find out what was going on. He said that Oster told him it's going to happen and that Picerno was not lying to Campellone.

Campellone was able to get a meeting with Picerno and lawyer Donald Lembo. Campellone said that Picerno told him at the meeting that Picerno and Lembo were to be his partners in a company called Campo Investments Ltd.

Campellone indicated in court that he was troubled by that because he was putting up all the money for the deal, yet Picerno and Lembo were partners.

"I just told him I don't need partners," Campellone testified.

-- projo.com staff writer Michael P. McKinney, with reports from Journal staff writer John Hill

Campellone said he got the documents concerning the acquisition to his lawyer, Joseph DeAngelis. After talking about the matter with his lawyer, Campellone pulled out of the deal and demanded his money back. He said Picerno paid back $10,000 of the $25,000 bribe with a a check in August 2001 and paid off the $15,000 balance with a check from Major Construction Associates.

Major Construction was a company working on a playground renovation in Lincoln at the time. Its owner, the state says, is Robert Gelfuso, who was the second buyer the state alleges Picerno lined up to buy the same H&H Screw property and pay the bribe.

During cross-examination this afternoon, Oster's defense lawyer, C. Leonard O'Brien, questioned Campellone on his relationship with Picerno before the 2001 period covered by the case against Oster.

Under O'Brien's questioning, Campellone acknowledged selling Picerno a car in December 1999 -- more than a year before Oster took office -- at $400 over invoice, and to letting Picerno use dealer plates on the car for at least a year. That allowed Picerno to avoid paying Rhode Island sales tax on the car, which Campellone estimated he sold the Planning Board member for $22,000.

Campellone testified that Picerno said he planned to register the car out of state, which also would enable the then-Planning Board member to avoid paying local property taxes on the car to the town of Lincoln.

Campellone testified he extended those favors to Picerno because of his position as a Planning Board member. He said he knew Picerno to know people in town government and have political power.

"He knows how to put you out of business," said Campellone.

O’Brien also specifically questioned Campellone on whether, when he questioned Oster about how the sale of the property was progressing, he ever mentioned that he, Campellone had paid Picerno $25,000.

“You didn’t tell Mr. Oster you’d given Robert Picerno $25,000, did you?” O’Brien asked.

“No,” Campellone replied.

Campellone has testified that Oster told him “Bob isn’t lying” when he asked Oster about the status of his bid for the H&H Screw property in the first half of 2001. O’Brien asked if that was about the bid going before the Town Council and that was the question that Oster was answering when he said Picerno wasn’t lying.

Posted by Mike McKinney at 5:24 PM | Permalink

February 5, 2008

Oster trial: Free tires and dealer's plates for a year

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